How does the marginal propensity to consume relate to the Keynesian multiplier?
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"How to prove this ?
#2|k^2# then #2|k# for some #k\inZZ#"
1 Answer
Jan 9, 2016
Refer the explanation section
Explanation:
Keynesian multiplier is
In terms of MPC, the Multiplier is -
#k=1/(1-MPC)#
